India’s largest home services provider Urban Company has set a price band of Rs 98-103 per share for its initial public offering (IPO) comprising a fresh issue of up to Rs 472 crore and an offer for sale of up to Rs 1,428 crore.
At the upper end of the price band, the company will command a valuation of Rs 14,789 crore.
Strong financial performance
The company reported revenues from operations of Rs 1,144.4 crore in FY25, up from Rs 828 crore in FY24. It earned a restated profit of Rs 239.76 crore in FY25, compared with a loss of Rs 92.8 crore in the previous year. In Q1FY26, the company posted revenues from operations of Rs 367.2 crore, up from Rs 280.85 crore in the year-ago period. The restated profit was Rs 6.93 crore, lower than the Rs 12.62 crore in Q1FY25.
CEO Abhiraj Singh Bhal said the focus and the priority of the company is to first grow the India business. He added that the company has a few important categories, such as cleaning services, beauty services, AC repair, electricians, plumbers, and carpenter services.
“Insta help, launched earlier this year, has started to grow very well and is seeing user traction,” he said, adding the company’s growth framework includes a significant rise in consumer base, improving the experience in terms of quality, speed, and affordability, and also continues to invest in new services. “We believe that more real-time, instantaneous fulfilment of services is going to be a driver for future growth,” he said.
IPO proceeds and investor gains
The company plans to utilise Rs 190 crore net proceeds from fresh issue towards new technology development and cloud infrastructure, Rs 75 crore towards lease payments for offices, and Rs 90 crore towards marketing activities.
The IPO will deliver bumper returns for the venture capitalists. The selling shareholders in the OFS include Accel India IV (Mauritius), Bessemer India Capital Holdings, Elevation Capital, Internet Fund, and VYC11. Accel has a 10.5% stake in the company, while Elevation Capital has a stake of 10.8%.
At the price band announced, the founders’ holding has increased around 10,000 times in value, while that of Accel has risen more than 2,600%. For Elevation Capital, the increase would be 1800% while for Bessemer it would be 1,300%.